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91_SB1020
LRB9106091EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 18-125 and 18-133.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 18-125 and 18-133 as follows:
7 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
8 Sec. 18-125. Retirement annuity amount.
9 (a) The annual retirement annuity for a participant who
10 terminated service as a judge prior to July 1, 1971 shall be
11 based on the law in effect at the time of termination of
12 service.
13 (b) Effective July 1, 1971, the retirement annuity for
14 any participant in service on or after such date shall be 3
15 1/2% of final average salary, as defined in this Section, for
16 each of the first 10 years of service, and 5% of such final
17 average salary for each year of service on excess of 10.
18 For purposes of this Section, final average salary shall
19 be:
20 (1) the average salary for the last 4 years of
21 credited service as a judge for a participant who
22 terminates service before July 1, 1975.
23 (2) for a participant who terminates service after
24 June 30, 1975 and before July 1, 1982, the salary on the
25 last day of employment as a judge.
26 (3) for any participant who terminates service
27 after June 30, 1982 and before January 1, 1990, the
28 average salary for the final year of service as a judge.
29 (4) for a participant who terminates service on or
30 after January 1, 1990 but before the effective date of
31 this amendatory Act of 1995, the salary on the last day
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1 of employment as a judge.
2 (5) for a participant who terminates service on or
3 after the effective date of this amendatory Act of 1995,
4 the salary on the last day of employment as a judge, or
5 the highest salary received by the participant for
6 employment as a judge in a position held by the
7 participant for at least 4 consecutive years, whichever
8 is greater.
9 However, in the case of a participant who elects to
10 discontinue contributions as provided in subdivision (a)(2)
11 of Section 18-133, the time of such election shall be
12 considered the last day of employment in the determination of
13 final average salary under this subsection.
14 The maximum retirement annuity for any participant shall
15 be 85% of final average salary.
16 (c) The retirement annuity for a participant who retires
17 prior to age 60 with less than 28 years of service in the
18 System shall be reduced 1/2 of 1% for each month that the
19 participant's age is under 60 years at the time the annuity
20 commences. However, for a participant who retires on or
21 after the effective date of this amendatory Act of the 91st
22 General Assembly, the percentage reduction in retirement
23 annuity imposed under this subsection shall be reduced by
24 5/12 of 1% for every month of service in this System in
25 excess of 20 years, and therefore a participant with at least
26 26 years of service in this System may retire at age 55
27 without any reduction in annuity.
28 The reduction in retirement annuity imposed by this
29 subsection shall not apply in the case of retirement on
30 account of disability.
31 (Source: P.A. 89-136, eff. 7-14-95.)
32 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
33 Sec. 18-133. Financing; employee contributions.
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1 (a) Effective July 1, 1967, each participant is required
2 to contribute 7 1/2% of each payment of salary toward the
3 retirement annuity. Such contributions shall continue during
4 the entire time the participant is in service, with the
5 following exceptions:
6 (1) Contributions for the retirement annuity are
7 not required on salary received after 18 years of service
8 by persons who were participants before January 2, 1954.
9 (2) A participant who continues to serve as a judge
10 after becoming eligible to receive the maximum rate of
11 annuity may elect, through a written direction filed with
12 the Board, to discontinue contributing to the System.
13 Any such option elected by a judge shall be irrevocable
14 unless prior to January 1, 2000 July 1, 1996, and while
15 continuing to serve as judge, the judge (A) files with
16 the Board a letter cancelling the direction to
17 discontinue contributing to the System and requesting
18 that such contributing resume, and (B) pays into the
19 System an amount equal to the total of the discontinued
20 contributions plus interest thereon at 5% per annum.
21 Service credits earned in any other "participating
22 system" as defined in Article 20 of this Code shall be
23 considered for purposes of determining a judge's
24 eligibility to discontinue contributions under this
25 subdivision (a)(2).
26 (3) A participant who (i) has attained age 60, (ii)
27 continues to serve as a judge after becoming eligible to
28 receive the maximum rate of annuity, and (iii) has not
29 elected to discontinue contributing to the System under
30 subdivision (a)(2) of this Section (or has revoked any
31 such election) may elect, through a written direction
32 filed with the Board, to make contributions to the System
33 based only on the amount of the increases in salary
34 received by the judge on or after the date of the
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1 election, rather than the total salary received. If a
2 judge who is making contributions to the System on the
3 effective date of this amendatory Act of the 91st General
4 Assembly makes an election to limit contributions under
5 this subdivision (a)(3) within 90 days after that
6 effective date, the election shall be deemed to become
7 effective on that effective date and the judge shall be
8 entitled to receive a refund of any excess contributions
9 paid to the System during that 90-day period; any other
10 election under this subdivision (a)(3) becomes effective
11 on the first of the month following the date of the
12 election. An election to limit contributions under this
13 subdivision (a)(3) is irrevocable. Service credits
14 earned in any other participating system as defined in
15 Article 20 of this Code shall be considered for purposes
16 of determining a judge's eligibility to make an election
17 under this subdivision (a)(3).
18 (b) Beginning July 1, 1969, each participant is required
19 to contribute 1% of each payment of salary towards the
20 automatic increase in annuity provided in Section 18-125.1.
21 However, such contributions need not be made by any
22 participant who has elected prior to September 15, 1969, not
23 to be subject to the automatic increase in annuity
24 provisions.
25 (c) Effective July 13, 1953, each married participant
26 subject to the survivor's annuity provisions is required to
27 contribute 2 1/2% of each payment of salary, whether or not
28 he or she is required to make any other contributions under
29 this Section. Such contributions shall be made concurrently
30 with the contributions made for annuity purposes.
31 (Source: P.A. 89-136, eff. 7-14-95.)
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.